Pactiv Evergreen has signed a deal to sell two of its properties — including one in Waynesville — to a global paper and pulp producer.
This deal is likely to bring economic benefits to the area.
In a $110 million agreement, Pactiv Evergreen is to sell its Waynesville extrusion facility, and its Pine Bluff, Ark. facility to a company called Suzano.
"Suzano is a Brazilian company with over 100 years in the pulp industry," said David Francis, economic development director for Haywood County. "They use eucalyptus for their paper and fiber."
Francis says the company carries credibility.
"They are becoming the largest pulp manufacturer in the world now," he said.
Pactiv Evergreen's liquid packaging board and cup stock are made in Arkansas to make beverage cups, while Waynesville provides incremental extrusion or forming capacity for the board.
"We expect it to reduce the capital intensity of our business, improve our cash flow profile and further strengthen our balance sheet," said Pactiv Evergreen President and CEO Michael King on the sale.
When Pactiv Evergreen shut down its Canton mill last summer, it also impacted the Waynesville plant, reducing the workforce from 200 to about 50.
Francis says the county looks forward to working with Suzano with hopes that those who lost jobs in Waynesville will get them back.
I would hope that they would give them first preference. We'll have to see how that works with the labor agreement from the union, how that works with the closure of the mill," said Francis. "A lot of people had to look elsewhere and had to go outside of the county to find jobs. So, bringing those people back into Haywood County is going to be a blessing, for sure.
Waynesville mayor Gary Caldwell said that this would make a huge difference to the local economy. He also mentioned that the Waynesville plant is the town's second-biggest water customer.
"That's revenue coming back to the town that is needed," he said.
Francis says the potential sale of Pactiv Evergreen's Canton mill to Eric Spirtas' demolition and re-development company remains in the due diligence phase.
"As of right now, things are marching in the progression that he wanted to see," said Francis.
Things are farther down the road with Suzano's agreement to buy the Waynesville plant.
"My understanding [is] that it's a done deal. It's just the closing," said Caldwell.
The deal is expected to be finalized later this year in the fourth quarter. The two companies have also agreed to a long-term deal for Suzano to use Pine Bluff and Waynesville to supply liquid packaging board to Pactiv Evergreen.
STORY & PHOTO COURTESY OF ABC 13 WLOSPactiv Evergreen agrees to sell Waynesville factory in $110 million deal (wlos.com)
